US dollar rises to NT$30.132 after making NT$0.002 gain
April 12, 2014, 12:16 am TWN
TAIPEI -- The U.S. dollar rose against the New Taiwan dollar Friday, gaining NT$0.002 to close at NT$30.132 to end a four-session losing streak on the back of the local central bank's intervention, dealers said.
The central bank took advantage of the slower pace of appreciation in other regional currencies, such as the South Korean won, to help the U.S. dollar reverse its earlier losses in the local foreign exchange market, they said.
The greenback opened at NT$30.140 and moved between NT$29.970 and NT$30.150 before the close. Turnover totaled US$777 million during the trading session.
The U.S. dollar opened higher on a technical rebound from the losses seen in the previous session but immediately fell to negative territory as foreign investors kept moving funds into the region, dealers said.
The fund inflow lifted major currencies in the region, particularly the won, which touched a high of more than five years, they said. But the pace of the won's appreciation turned slower to some extent compared with a session earlier.
The won's strength prompted traders here to pick up the New Taiwan dollar and cut their U.S. dollar holdings on expectations that the U.S. Federal Reserve will continue to keep interest rates low for some time, they added.
A rising Chinese yuan also added downward pressure on the U.S. dollar in the local foreign exchange after the People's Bank of China further raised the yuan reference rate against the greenback, dealers said.
Chinese authorities have repeatedly rejected accusations from the U.S. that China has been kicking off a currency depreciation cycle to boost the country's exports, they said.
Heeding the strength of other regional currencies, traders here dumped the U.S. dollar to push it below the NT$30 at one point before the local central bank stepped in to prop up the greenback, dealers said.
It is likely for the central bank to maintain the U.S. dollar above the NT$30 mark as long as foreign investors continue to send funds into the region, they said.